Ssy Group Limited · HKEX:2005
Ssy — FY2023 Earnings Presentation
54 slides from Ssy's earnings presentation, Mar 27, 2024
Slide 1: 2023 Annual Results & Roadshow material
2023 Annual Results & Roadshow material Updated on 27 March 2024 Copyright ® 2022 SSY Group Limited. All rights reserved.
Slide 2: Disclaimer
免责声明 The presentation is prepared by SSY Group Limited (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form an basis of investment decision for any class of
Slide 3: Business Profile, Competitive Advantages, R&D Status and Prospects, Development Strategies
PART 01 PART 02 PART 03 PART 04 Business Competitive R&D Status and Development Profile Advantages Prospects Strategies SSY Group Limited • 3
Slide 4: Business Profile
PART 01 Business Profile ➢ Financial Highlights ➢ Revenue Overview ➢ Shareholding & ➢ R&D Overview Group Structure
Slide 5: Financial Highlights (2023)
Financial Highlights (2023) （HK$'000） 2023 2022 Increase Revenue 6,463,009 6,434,025 0.5% Gross Profit 3,619,639 3,567,586 1.5% Gross Profit Margin 56.0% 55.4% 0.6%pt EBITDA 2,064,413 1,741,844 18.5% EBITDA Margin 31.9% 27.1% 4.8%pt Net Profit 1,318,616 1,122,837 17.4% Net Profit Margin 20.4% 17.5%
Slide 6: Financial Highlights (2023) (continued)
Financial Highlights (2023)(continued) Increase/ （HK$'000） 31 December 2023 31 December 2022 (Decrease) Cash and Cash Equivalent 1,615,208 1,667,547 (52,339) Bank Borrowings 3,368,141 3,207,648 160,493 Net Asset Value 7,268,692 6,545,824 722,868 Gearing Ratio 20.2% 19.9% 0.3%pt Current Ratio 2.03 1.
Slide 7: Shareholding & Group Structure
Shareholding & Group Structure Updated as at 27 March 2024 Sichuan Kelun China Pharmaceutical & UBS Others No. of issued shares : Pharmaceutical Mr. Qu Jiguang 2,969,043,385 20.43% 37.43% 10.01% 32.13% Since January 2023, SSY have repurchased 3.64 million shares SSY Group Limited (Stock Code: 2005.H
Slide 8: Revenue Overview (2023)
Revenue Overview (2023) 2023 2022 By Products Revenue % of Total Revenue % of Total (HK$’000) Revenue (HK$’000) Revenue I.V. Infusion 4,040,743 62.5% 3,510,342 54.6% Ampoule Injections 826,103 12.8% 978,707 15.2% Bulk Pharmaceuticals 888,867 13.8% 1,358,949 21.1% Oral Preparations 478,195 7.4% 346,0
Slide 9: Revenue Breakdown by Products (2023)
Revenue Breakdown by Products (2023) 集团结构 产品销售结构（2021年一季度） Oral Preparations, Medical Materials and other products 10.9% 石药集团有限公司(股票代码：2005.HK) Non-PVC Soft Bag 32.4% Bulk Pharmaceuticals 13.8% 大输液、安瓿小水针、 口服制剂等 Ampoule Upright Soft Bag 12.8% 13.6% Glass Bottle PP Plastic Bottle 药用包材3.7% 化工原料(甲胺) 12.
Slide 10: I.V. Infusion
I.V. Infusion Sales volume increase, Optimise product mix, Key products continue growth trend In 2023, sales volume of infusion solution reached 1.908 billion bottles (bags), representing an increase of 20.9% y-o-y, revenue reached HKD4,041 million, representing an increase of 15.1% y-o-y Production
Slide 11: Revenue Overview - I.V. Infusion (2023)
Revenue Overview - I.V. Infusion (2023) 大输液销售概览 Sales volume of Upright soft bag and Non-PVC soft bag increased by 46.2% & 24.5% y-o-y respectively I.V. Infusion – 2023 By Packaging Average Selling Revenue % of IV GP% Price (ASP) (HK$’000) Revenue (HK$) Non-PVC Soft Bag 2,094,847 51.8% 3.51 65.1% Up
Slide 12: Revenue Overview - I.V. Infusion (2023)
Revenue Overview - I.V. Infusion (2023) Proportion of therapeutic infusions (as % of IV revenue) increased by 2.2 %pt Various products’ volume entered rapid growth period: Ambroxol Hydrochloride (+215%), Moxifloxacin Hydrochloride (+233%), Fluconazole (+295%), Peritoneal dialysis solution (+24%) I.V
Slide 13: Ampoule Injections
Ampoule Injections Increasingly rich in varieties, Production gradually scaled up, Increasing in centralised procurement In 2023, sales volume reached 309 million, increased by 83.8% y-o-y; revenue accounted for HK$826 million, decreased by 15.6% y-o-y mainly due to change of sales channel of Betahi
Slide 14: Oral Preparations
Oral Preparations Accelerated upgrade of production & sales scale, revenue contribution increases year by year In 2023, sales volume reached 1.454 billion tablets/capsules, increased by 31.7% y-o-y; revenue accounted for HK$478 million, increased by 38.2% y-o-y, contributed for 7.4% of total sales,
Slide 15: Bulk Pharmaceuticals
Bulk Pharmaceuticals Softer market demands and dropped product prices, successively obtained approvals for featured bulk pharmaceuticals products with high-value added, product mix further diversified In 2023, revenue accounted for HK$889 million, decreased by 34.6% y-o-y. Mainly affected by the dec
Slide 16: Medical Materials
Medical Materials Steady operating result In 2023, revenue of external sales accounted for HK$162 million, decreased by 5.7% y-o-y. Such decrease mainly due to guaranteed supply to the Group with increase in usage and the effect of the exchange rate. Newly developed products, such as bioprocessing f
Slide 17: Foreign exports
Foreign exports Preparation exports maintain an upward trend, with significant growth in the African In 2023, export of infusion solution: volume of 106 million bottles (bags), growth of 6% y-o-y, revenue of HK$163 million, growth of 10% y-o-y Developed 21 new customers Completed 47 product registra
Slide 18: Research and Development
Research and Development Up to 31 December 2023, a total of 86 national production approvals were obtained (increased 132% y-o-y), including 72 for preparations and 14 for bulk pharmaceuticals Up to 31 December 2023, the Group has a total of 68 product types with 88 specifications passed or regarded
Slide 19: Product passed/regarded passing consistency evaluation
Product passed/regarded passing consistency evaluation (68 Types, 88 Specifications) No. Drug Name Specification Approval Date Approval in PRC Treatment Category 1 Fluconazole Tablets 150mg 28/04/2019 The First Systemic anti-infectives 2 Doxofylline Injection 10ml:0.1g 21/01/2020 The First Respirato
Slide 20: Product passed/regarded passing consistency evaluation
Product passed/regarded passing consistency evaluation (68 Types, 88 Specifications) No. Drug Name Specification Approval Date Approval in PRC Treatment Category 33 Rosuvastatin Calcium Tablets 10mg 17/08/2020 Cardiovascular System 34 Rosuvastatin Calcium Tablets 5mg 09/06/2022 Cardiovascular System
Slide 21: Product passed/regarded passing consistency evaluation
Product passed/regarded passing consistency evaluation (68 Types, 88 Specifications) No. Drug Name Specification Approval Date Approval in PRC Treatment Category 65 Tedizolid Phosphate Injection 200mg 26/05/2023 Systemic anti-infectives 66 Urapidil Hydrochloride Injection 5ml 29/05/2023 Cardiovascul
Slide 22: Products considered as catalyst
Products considered as catalyst (29 Types, 37 Specifications) Catalyst products It is considered to have room for great growth as it meets the following conditions at the same time: Bulk pharmaceuticals + preparation integration (Self-bulk pharmaceuticals supply) & Five or more companies passed Cons
Slide 23: Products considered as catalyst
Products considered as catalyst (29 Types, 37 Specifications) No. Drug Name Specification Approval Date Approval in PRC Treatment Category 14 Pitavastatin Calcium Tablets 1mg 30/06/2023 Cardiovascular System 15 Linezolid and Glucose Injection 100ml 29/06/2021 Systemic anti-infectives 16 Metronidazol
Slide 24: Competitive Advantages
PART 02 Competitive Advantages
Slide 25: Diversified and Competitive Advantages
Competitive Advantages Bulk Pharmaceuticals, Medical . Intelligent Manufacturing I.V. Materials, Preparations and Infusion Production Lines, Biotech - Diversified and Largest Production Capacity on Coordinated Development Single Factory Basis Numerous Specifications,. Complete Numerous Prize Recogni
Slide 26: Diversified and Coordinated Development
Bulk Pharmaceuticals, Medical Materials, Preparations and Biotech - Diversified and Coordinated Development 1 R&D institute, Production Bases: 2 preparation, 2 bulk pharmaceutical, 1 chemicals and 1 medical material, forming whole-industry-chain by preparations + bulk pharmaceuticals + medical mater
Slide 27: Pharmaceutical R&D Institute
Diversified and Coordinated Development - Pharmaceutical R&D Institute It covers an area of 85 acres and has advanced equipment such as high-efficiency/ultra-high- performance liquid chromatographs, gas chromatographs, Fourier infrared spectrometers, and the leading hardware level in the country. I
Slide 28: Preparations Production Base
Diversified and Coordinated Development – Preparations Production Base Shijiazhuang No.4 Pharmaceutical Major products: Non-PVC Soft Bag IV, Upright Soft Bag IV, PP Plastic Bottle IV, Glass Bottle IV, PP Ampoule Injections, Tablets, Capsule and Granules SSY Group Limited • 28
Slide 29: Bulk Pharmaceuticals Production Base
Diversified and Coordinated Development – Bulk Pharmaceuticals Production Base Hebei Guangxiang Pharmaceutical Cangzhou Lingang Youyi Chemical Major products: Caffeine, Major products: Methylamine (API for Theophylline & Aminophylline Series caffeine and other pharmaceutical/ Metronidazole, Benzoyl
Slide 30: Specialised Bulk Pharmaceuticals
Specialised Bulk Pharmaceuticals Bulk Pharmaceuticals with status A owned by Hebei Guangxiang Pharmaceutical (26) Serial Registration No. Drug Name Status 1 Y20200001269 Epalrestat A 2 Y20190007857 Aminophylline A 3 Y20190007856 Theophylline A 4 Y20190006345 Niacin A 5 Y20190002961 Benzoyl metronida
Slide 31: Specialised Bulk Pharmaceuticals
Specialised Bulk Pharmaceuticals Bulk Pharmaceuticals with status A owned by Hebei Guolong Pharmaceutical (20) Serial Registration No. Drug Name Status 1 Y20200001123 Cinacalcet Hydrochloride A 2 Y20200000767 Ipratropium Bromide A 3 Y20200000466 Dexmedetomidine Hydrochloride A 4 Y20190001004 Blonans
Slide 32: Medical Materials Production Base
Diversified and Coordinated Development – Medical Materials Production Base Jiangsu Best New Medical Material Major products: Bioprocessing film series Multi-layer co-extrusion infusion films Rubber stopper series Gasket series SSY Group Limited • 32
Slide 33: Biotechnology and product development
Diversified and Coordinated Development – Biotechnology and product development Hebei Hanlin Technology Major products： In vitro diagnostic reagents, Cosmetic Peptide, Medical Ultrasound Coupling Agent and Medical Radiation Protection Spray SSY Group Limited • 33
Slide 34: Numerous Varieties, Complete Dosage Form, Wide coverage
Numerous Varieties, Complete Dosage Form, Wide coverage No. of Production approvals: 424 No. of Preparations approved: 304 including including 304 Preparations, 50 Bulk Pharmaceuticals, 206 in Essential Drug List, 101 passed Consistency Evaluation, 17 in National Centralised Procurement 42 Medical M
Slide 35: Numerous Varieties, Complete Dosage Form, Wide coverage
Numerous Varieties, Complete Dosage Form, Wide coverage I.V. Infusion National Centralised Procurement： Ampoule Injections & Lyophilized powder Oral preparations • • National Centralised Procurement： Fluconazole Sodium Chloride Injection, • National Centralised Procurement： Doxofylline, Ambroxol Hyd
Slide 36: Market share increases for products in national centralised procurement
Market share increases for products in national centralised procurement National centralised Change in market share* procurement batch Products selected in tender (Date of Result) 2020_ 2021_ 2022_ Prucalopride Succinate tablet 1.09% 6.59% 9.44% 3rd batch（Aug 2020） Cefdinir capsule 2.30% 32.60% 38.5
Slide 37: Market share increases for products in national centralised procurement
Market share increases for products in national centralised procurement National centralised Change in market share* procurement batch 16 products proposed to bid for tender (Date of Result) 2020_ 2021_ 2022_ Terbutaline Sulfate Injection - - - 10th batch（2024） Sodium Lactate Ringer's Injection 17.2
Slide 38: Largest Production Capacity on Single Factory Basis in PRC
I.V. Infusion Production Line Intelligent Manufacturing, Largest Production Capacity on Single Factory Basis in PRC I.V. Production Capacity Expansion No.4 Pharma Year Increase / Year Increase / Year Increase / Year 2019 % change 2021 % change 2022 % change 2023 Non-PVC Soft Bag 750M - 750M - 750M -
Slide 39: Awards and recognitions
Awards and recognitions ✓ Ranked 10 in Chemical Drugs R&D Capabilities in China in 2023 ✓ China pharmaceutical independent innovation pioneer enterprise ✓ China innovative pharmaceutical companies ✓ National-level manufacturing individual champion enterprise ✓ Selected in the 2022 list of outstandin
Slide 40: R&D Status and Prospects
PART 03 R&D Status and Prospects ➢ Strategy in generic drugs R&D ➢ Products for approval application ➢ Specialised drug platform ➢ Key innovative drug R&D projects ➢ Products awaiting approval ➢ Strong external R&D support
Slide 41: Strategy in generic drugs R&D
Strategy in generic drugs R&D Bulk pharmaceuticals Solid preparations ➢ Products requires difficult process/ special process ➢ Focus on products with large market demand and products, self-owned patented technology products urgent clinical needs ➢ Forming Product series ➢ Bulk pharmaceuticals + prep
Slide 42: Strategy in generic drugs R&D (Key therapeutic fields)
Strategy in generic drugs R&D (Key therapeutic fields) Respiratory system: injections/inhalation/oral Cardiovascular system: oral/injection Stimulates lysosomal release from mucus-secreting cells Hypertension (single prescription, compound (Bromhexine); Phosphodiesterase (PDE) Inhibitors preparation
Slide 43: Bulk Pharmaceuticals under review (Hebei Guangxiang)
Bulk Pharmaceuticals under review (Hebei Guangxiang) No. Registration No. Drug Name Status Expected approval 1 Y20210000927 Doxofylline A Approved 2 Y20210000931 Tinidazole A Approved 3 Y20210000930 Theobromine A Approved 4 Y20210000678 Tedizolid Phosphate A Approved 5 Y20210001167 Uradil A Approved
Slide 44: Bulk Pharmaceuticals under review (Hebei Guolong)
Bulk Pharmaceuticals under review (Hebei Guolong) No. Registration No. Drug Name Status Expected approval 1 Y20190000687 L-malic acid A Approved 2 Y20210000821 Stippentol A Approved 3 Y20220000356 Nicorandil A Approved 4 Y20220000426 Etomidate I 2024 5 Y20220000427 Trexagliptin Succinate I 2024 6 Y2
Slide 45: Type 3 Preparations under review
Type 3 Preparations under review Expected to be approved by the end of 2024 No. Acceptance No. Drug Name Specification 1 CYHS2201367 Magnesium Sulfate Injection 20ml 2 CYHS2201366 Magnesium Sulfate Injection 10ml 3 CYHS2201365 Magnesium Sulfate Injection 2ml 4 CYHS2201309 Sodium Bicarbonate Ringer's
Slide 46: Type 4 Preparations under review
Type 4 Preparations under review Expected to be approved by the end of 2024 No. Acceptance No. Drug Name Specification 1 CYHS2201023 Ropivacaine Hydrochloride Sodium Chloride Injection 100ml 2 CYHS2302754 Vortioxetine Hydrobromide Tablets 10mg 3 CYHS2201196 Propofol Medium / Long Chain Fat Emulsion
Slide 47: Preparations under consistency evaluation review
Preparations under consistency evaluation review Expected to be approved by the end of 2024 No. Acceptance No. Drug Name Specification 1 CYHB2350257 Chlorpheniramine Maleate injection 1ml:10mg 2 CYHB2350256 Chlorpheniramine Maleate injection 2ml:20mg 3 CYHB2350237 Potassium Chloride Injection 20ml:3
Slide 48: Production approvals to submit by end of 2024
Production approvals to submit by end of 2024 即将上报的产品（2022年） (updated as of 9 Mar 2024) To submit soon ◆ 26 types of bulk pharmaceuticals ◆ 42 types of liquid preparations with 46 specifications ◆ 39 types of oral preparations with 44 specifications SSYSSY Group Limited Group • 48 Limited • 48
Slide 49: Major projects of innovative drug development
Major projects of innovative drug development 创新药的研发策略 Type I New Drug （a）NP-01：Type I new drug for gastric cancer, expected to complete phase I clinical trial by Apr 2024, start phase II clinical trial in Q2 2024 （b）ADN-9： Anti-hepatic fibrosis type I new drug, expected to apply for Phase I clinica
Slide 50: Strong External R&D and Industrialization Support/Cooperation
Strong External R&D and Industrialization Support/Cooperation ◆ Collaborative R&D of ◆ Undergraduate and Chinese Shenyang postgraduate Type I New Drugs Pharmaceutical Pharmaceutical internship base ◆ Technological R&D of University University ◆ Professional master's training Type II New Drugs ◆ Coll
Slide 51: Development Strategies
PART 04 Development Strategies ➢ Fields for development ➢ Production chains ➢ Bioprocessing films ➢ Advanced preparations ➢ Intelligent production
Slide 52: Development Strategies
Fields for development Generic Drugs：Increase R&D continuously; focus on high-end bulk drugs; integrate specialized bulk drug + preparations Innovative Drugs：Clinical trials and commercialization to proceed on schedule；plan on drug development for children and elderly Bioprocessing films Production
Slide 53: Prospects for development (2nd half of 2023)
Prospects for development (2nd half of 2023) IV：Further expand market share of basic therapeutic infusion in hospitals of different tiers, focus on increasing the sales volume of key infusion products, consolidate its market share Ampoule：Explore the market potential of dominant products, step up ef
Slide 54: Company Contacts
Company Contacts Direct line： +852-2688 0869 Wang Xianjun +86-14716028769 （Senior Consultant） Meng Guo +86-13933073928 （Executive Director） mengguo@ssygroup.com.hk Henry Chow +852-9721 2670 （Executive Director & CFO） henrychow@ssygroup.com.hk Isabella Wang +86-13801231199 （Wechat） （Deputy General Ma